NYSE:BRK.A

Stock Analysis Report

Executive Summary

Berkshire Hathaway Inc., through its subsidiaries engages in insurance, freight rail transportation, and utility businesses.

Snowflake

Fundamentals

Questionable track record with worrying balance sheet.


Similar Companies

Share Price & News

How has Berkshire Hathaway's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRK.A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

BRK.A

-0.03%

US Diversified Financial

0.5%

US Market


1 Year Return

1.3%

BRK.A

1.7%

US Diversified Financial

12.8%

US Market

Return vs Industry: BRK.A underperformed the US Diversified Financial industry which returned 1.7% over the past year.

Return vs Market: BRK.A underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

BRK.AIndustryMarket
7 Day-0.1%-0.03%0.5%
30 Day6.0%6.1%4.3%
90 Day12.2%12.4%8.0%
1 Year1.3%1.3%1.8%1.7%15.3%12.8%
3 Year40.3%40.3%39.3%38.9%48.3%38.7%
5 Year51.3%51.3%49.0%48.4%62.6%44.5%

Price Volatility Vs. Market

How volatile is Berkshire Hathaway's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Berkshire Hathaway undervalued compared to its fair value and its price relative to the market?

20.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRK.A ($331106) is trading above our estimate of fair value ($247570.43)

Significantly Below Fair Value: BRK.A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRK.A is poor value based on its PE Ratio (20.2x) compared to the Diversified Financial industry average (12.4x).

PE vs Market: BRK.A is poor value based on its PE Ratio (20.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BRK.A's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BRK.A is overvalued based on its PB Ratio (1.4x) compared to the US Diversified Financial industry average (0.8x).


Next Steps

Future Growth

How is Berkshire Hathaway forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRK.A's earnings are forecast to decline over the next 3 years (-17.7% per year).

Earnings vs Market: BRK.A's earnings are forecast to decline over the next 3 years (-17.7% per year).

High Growth Earnings: BRK.A's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BRK.A's revenue (5.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BRK.A's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRK.A's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has Berkshire Hathaway performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRK.A has high quality earnings.

Growing Profit Margin: BRK.A's current net profit margins (10.6%) are lower than last year (25.4%).


Past Earnings Growth Analysis

Earnings Trend: BRK.A's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: BRK.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BRK.A had negative earnings growth (-56.6%) over the past year, making it difficult to compare to the Diversified Financial industry average (81.3%).


Return on Equity

High ROE: BRK.A's Return on Equity (6.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Berkshire Hathaway's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BRK.A has a high level of physical assets or inventory.

Debt Coverage by Assets: BRK.A's debt is covered by short term assets (assets are 1.8x debt).


Financial Institutions Analysis

Asset Level: BRK.A's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BRK.A has a sufficient allowance for bad loans.

Low Risk Liabilities: BRK.A reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BRK.A has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BRK.A has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BRK.A has an appropriate level of bad loans.


Next Steps

Dividend

What is Berkshire Hathaway's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BRK.A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BRK.A's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BRK.A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BRK.A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BRK.A's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Berkshire Hathaway's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Warren Buffett (89yo)

49.8yrs

Tenure

US$388,968

Compensation

Mr. Warren E. Buffett has been the Chairman, Chief Executive Officer and President of Berkshire Hathaway Inc. since 1970. Mr. Buffett is the Owner of IMC Group. He serves as Manager and Member of the Board ...


CEO Compensation Analysis

Compensation vs Market: Warren's total compensation ($USD388.97K) is below average for companies of similar size in the US market ($USD11.04M).

Compensation vs Earnings: Warren's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

67yo

Average Age

Experienced Management: BRK.A's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

26.8yrs

Average Tenure

71yo

Average Age

Experienced Board: BRK.A's board of directors are seasoned and experienced ( 26.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$19,866,50620 Dec 18
Ajit Jain
EntityIndividual
Role
Member of the Board of Directors
Vice Chairman of Insurance Operations & Director
Shares67
Max PriceUS$296,515.01

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Warren Buffett (89yo)

    Chairman

    • Tenure: 49.8yrs
    • Compensation: US$388.97k
  • Marc Hamburg (69yo)

    Senior VP & CFO

    • Tenure: 0yrs
    • Compensation: US$2.26m
  • Greg Abel (57yo)

    Vice Chairman of Non Insurance Business Operations & Director

    • Tenure: 1.8yrs
    • Compensation: US$18.01m
  • Mary Rhinehart (60yo)

    Chairman

    • Tenure: 0yrs
  • Daniel Jaksich

    VP, Controller & Principal Accounting Officer

    • Tenure: 0yrs
  • Peter Eastwood

    CEO & President of Specialty Insurance

    • Tenure: 0yrs
  • Ajit Jain (67yo)

    Vice Chairman of Insurance Operations & Director

    • Tenure: 1.8yrs
    • Compensation: US$18.01m
  • Kerby Ham

    Treasurer

    • Tenure: 0yrs
  • Kara Raiguel

    CEO & President of General Re Unit

    • Tenure: 0yrs

Board Members

  • Walter Scott (88yo)

    Independent Director

    • Tenure: 31.8yrs
    • Compensation: US$3.30k
  • Warren Buffett (89yo)

    Chairman

    • Tenure: 49.8yrs
    • Compensation: US$388.97k
  • Matt Rose (59yo)

    Executive Chairman of Burlington Northern Santa Fe

    • Tenure: 0yrs
  • Charlie Munger (95yo)

    Vice Chairman

    • Tenure: 41.7yrs
    • Compensation: US$100.00k
  • Howard Buffett (64yo)

    Director

    • Tenure: 26.8yrs
    • Compensation: US$3.30k
  • Greg Abel (57yo)

    Vice Chairman of Non Insurance Business Operations & Director

    • Tenure: 1.8yrs
    • Compensation: US$18.01m
  • Tom Murphy (93yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$7.30k
  • Mary Rhinehart (60yo)

    Chairman

    • Tenure: 0yrs
  • Tony Nicely (75yo)

    Chairman of GEICO

    • Tenure: 0yrs
  • Ajit Jain (67yo)

    Vice Chairman of Insurance Operations & Director

    • Tenure: 1.8yrs
    • Compensation: US$18.01m

Company Information

Berkshire Hathaway Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Berkshire Hathaway Inc.
  • Ticker: BRK.A
  • Exchange: NYSE
  • Founded: 1889
  • Industry: Multi-Sector Holdings
  • Sector: Diversified Financials
  • Market Cap: US$539.924b
  • Shares outstanding: 1.63m
  • Website: https://www.berkshirehathaway.com

Number of Employees


Location

  • Berkshire Hathaway Inc.
  • 3555 Farnam Street
  • Omaha
  • Nebraska
  • 68131
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRK.ANYSE (New York Stock Exchange)YesClass A Common SharesUSUSDOct 1976
BRHXTRA (XETRA Trading Platform)YesClass A Common SharesDEEUROct 1976
BRHDB (Deutsche Boerse AG)YesClass A Common SharesDEEUROct 1976
BRKAWBAG (Wiener Boerse AG)YesClass A Common SharesATEUROct 1976
BRKBWBAG (Wiener Boerse AG)Class B Common SharesATEURMay 1996
BRYNDB (Deutsche Boerse AG)Class B Common SharesDEEURMay 1996
BRK.BNYSE (New York Stock Exchange)Class B Common SharesUSUSDMay 1996
BRKB *BMV (Bolsa Mexicana de Valores)Class B Common SharesMXMXNMay 1996
BRK/BSWX (SIX Swiss Exchange)Class B Common SharesCHCHFMay 1996
0R37LSE (London Stock Exchange)Class B Common SharesGBUSDMay 1996
BRYNXTRA (XETRA Trading Platform)Class B Common SharesDEEURMay 1996
BERK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 CLASS 'B' COM STKBRBRLOct 2013

Biography

Berkshire Hathaway Inc., through its subsidiaries engages in insurance, freight rail transportation, and utility businesses. It provides property and casualty insurance and reinsurance, as well as life, ac ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 23:32
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.